H.G. Infra Engineering Limited has successfully completed a strategic investment of Rs. 48.52 crores in its wholly owned subsidiary, marking a significant step into the battery energy storage system sector. The company announced the acquisition of equity shares in H.G. Banaskantha Bess Private Limited through a rights issue subscription on March 23, 2026.

Investment Details

The acquisition involved the purchase of 6,40,200 equity shares at an issue price of Rs. 758 per share, which includes a face value of Rs. 10 per share. The entire transaction was completed through cash consideration, demonstrating the company's strong financial position and commitment to expanding its business portfolio.

Subsidiary Profile

H.G. Banaskantha Bess Private Limited was incorporated on December 03, 2024, under the provisions of the Companies Act, 2013, with its registered office in Rajasthan, India. The subsidiary operates in the battery energy storage system industry, representing a strategic diversification for H.G. Infra Engineering.

Strategic Business Expansion

The investment represents H.G. Infra Engineering's strategic move to expand its business operations into the renewable energy storage sector. As the subsidiary was recently incorporated, it currently has nil turnover as of March 31, 2025, indicating this is a greenfield investment aimed at establishing a new business vertical.

Regulatory Compliance

The transaction has been disclosed in compliance with Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As H.G. Banaskantha Bess Private Limited is a wholly owned subsidiary, the transaction falls within the ambit of related party transactions. However, except for the shares held by the company in the subsidiary, the promoter, promoter group, and group companies do not have any additional interest in the acquired entity.

The acquisition required no governmental or regulatory approvals and was completed on the announcement date itself. This swift execution demonstrates the company's efficient decision-making process and readiness to capitalize on growth opportunities in the emerging battery storage sector.

HG Infra Engineering Limited has completed the divestment of its wholly-owned subsidiary H.G. Khammam Devarapalle PKG-2 Private Limited to Neo Infra Income Opportunities Fund on March 20, 2026. The transaction marks the culmination of a process that began with earlier announcements in August and December 2025.

Transaction Details

The company transferred its complete 100% equity stake aggregating to 14,10,500 equity shares in H.G. Khammam Devarapalle PKG-2 Private Limited. The Securities Purchase Agreement was executed on December 26, 2025, with the actual transfer of equity shares completed on March 20, 2026.

Financial Contribution of Subsidiary

H.G. Khammam Devarapalle PKG-2 Private Limited contributed significantly to the parent company's consolidated financials for the financial year ended March 31, 2025.

Payment Structure

The total consideration of ₹213.85 crore is being received in tranches. H.G. Infra Engineering has already received the first tranche amounting to ₹47.63 crore on March 20, 2026. The company expects to receive the second tranche in the following week.

Buyer Information

The buyer, Neo Infra Income Opportunities Fund, is a registered scheme under Neo Credit Alternatives Investment Trust, a Category II Alternative Investment Fund registered with SEBI. The fund is managed by Neo Alternative Asset Managers Private Limited, which has its registered office at Marathon Futurex, Mafatlal Mills Compound, NM Joshi Marg, Lower Parel, Mumbai. The buyer does not belong to the promoter, promoter group, or group companies, and the transaction does not fall under related party transactions.

Regulatory Compliance

The divestment has been carried out in compliance with Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction is not classified as a slump sale and does not fall within any scheme of arrangement, making Regulation 37A of LODR Regulations not applicable to this transaction.